Go Back   Team-BHP > BHP India > The Indian Car Scene


Closed Thread
 
Thread Tools Search this Thread
Old 9th April 2019, 22:09   #61
BHPian
 
Join Date: Mar 2011
Location: Bangalore
Posts: 81
Thanked: 46 Times
Default Re: Mahindra and Ford to explore strategic cooperation in India & other markets

Ford likely to end independent India business with new Mahindra deal - sources

https://in.reuters.com/article/us-fo...-idINKCN1RL1SH

Quote:
Ford Motor Co is nearing a deal with Mahindra & Mahindra to form a new joint-venture company in India, a move that will likely see the U.S. automaker cease independent operations in the country, two sources with direct knowledge of the talks told Reuters.

Under the terms of the deal being negotiated, Ford will form a new unit in India in which it will hold a 49 percent stake, while Mahindra will own 51 percent, the two sources said.
The U.S. carmaker’s Indian unit will transfer most of its current automotive business to the new entity, including its assets and employees, according to one of the sources.

“It’s like a partial exit (for Ford from India),” the source said.

One of the sources said the Ford-Mahindra deal would lead to more affordable Ford cars in the country, as the company would not need to pay any royalty to its global parent, as the Indian unit has to now.

The funds that accrue to Ford’s India unit because of the deal will also be used to clear some of its accumulated losses, the two sources said.

The deal is expected to close within 90 days, the sources said, adding the value of the transaction was not yet clear.

Puneet Gupta, associate director at IHS Markit, said the deal would help Ford and Mahindra launch new models at a faster pace and lower development cost, which is critical to success in a price sensitive market like India.

“It’s a win-win situation for both,” Gupta said.
achilles101 is offline   (3) Thanks
Old 10th April 2019, 06:42   #62
Senior - BHPian
 
kiku007's Avatar
 
Join Date: Apr 2005
Location: Brisbane
Posts: 1,774
Thanked: 1,843 Times
Default Re: Mahindra and Ford to explore strategic cooperation in India & other markets

September 2017
Quote:
Originally Posted by kiku007 View Post
Is this Ford's way of slowly giving away it's Chennai manufacturing facility to Mahindra without ruffling feathers?

I can't find any other reason, Ford can benefit from Mahindra. Mahindra of course can benefit from learning a thing or two about making good cars.
February 2019
Quote:
Originally Posted by GTO View Post

To me, it shows a lack of commitment from Ford India. Do they - in the future - want to become a minority stakeholder in a JV with Mahindra? I'm smelling the same thing I did when we heard about Toyota-badged Marutis (IMHO, that's just the first step toward Toyota buying stake in Maruti-Suzuki).
April 2019
NEW DELHI (Reuters) - Ford Motor Co is nearing a deal with Mahindra & Mahindra to form a new joint-venture company in India, a move that will likely see the U.S. automaker cease independent operations in the country, two sources with direct knowledge of the talks told Reuters.

Ford will complete the full circle if they execute this plan. Start with Mahindra 2 decades back; and end with Mahindra.

TechM (Mahindra group company) is a vendor/partner in Ford's IT division. I'd be interested to watch how things move there.

Anyhow, this shouldn't be surprising. Under the new CEO it's cuts everywhere.

https://www.thelocal.de/20190315/for...obs-in-germany
kiku007 is offline   (3) Thanks
Old 10th April 2019, 07:36   #63
BHPian
 
Ithaca's Avatar
 
Join Date: Sep 2017
Location: MH 43 // MH 46
Posts: 155
Thanked: 285 Times
Default Re: Mahindra and Ford to explore strategic cooperation in India & other markets

Article in today's TOI
Ford may end its solo drive in India

Source: TOI Mumbai
Ithaca is offline  
Closed Thread


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Nissan to build cars Under Datsun Brand for India & other markets in 2014 arvindmanju The Indian Car Scene 11 21st March 2012 14:43
Remnant Features from other Car Markets AVR The Indian Car Scene 27 2nd November 2011 23:19
Renault Nissan alliance and Daimler AG announce strategic partnership sidindica The International Automotive Scene 1 8th April 2010 10:31
Chrysler in cooperation talks with Fiat, Tata. madan80 The International Automotive Scene 14 13th August 2008 12:34


All times are GMT +5.5. The time now is 11:02.

Copyright 2000 - 2019, Team-BHP.com
Proudly powered by E2E Networks